Economy

Tax Law Takes Effect as Kaigama Warns of Social Tension Without Clarity

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By Samson Adeyanju 

The Catholic Archbishop of Abuja, Most Rev. Ignatius Kaigama, has warned that the implementation of the new tax law could fuel social tension if government fails to clearly explain its purpose and impact to Nigerians.

Archbishop Kaigama gave the warning on January 1, 2026, during the New Year Mass at the Our Lady Queen of Nigeria Catholic Pro-Cathedral, Garki, Abuja, as the tax regime formally took effect across the country.

Describing the law as complex and poorly communicated, the Archbishop said widespread lack of understanding among citizens was already generating fear and anxiety, particularly among those struggling with economic hardship.

“The government may be clear about what it wants, but the citizens are not clear, and this lack of clarity is what creates tension and conflict,” Kaigama said.

He cautioned that many Nigerians perceive the policy as “taxing poverty,” stressing that any tax system that deepens hardship at the grassroots level would be unacceptable.

While acknowledging that taxation can support national development, he insisted that citizens must clearly see and understand its benefits.

Kaigama urged government to ensure transparent and judicious use of tax revenues, especially in areas such as healthcare, education and social welfare, noting that public trust depends on visible and tangible outcomes.

Drawing comparisons with countries like the United Kingdom and the United States, he said citizens in those nations comply with tax obligations because they experience functional public services and social support systems.

The Archbishop expressed cautious optimism that government would listen to public concerns and fine-tune the policy to avoid worsening the suffering of Nigerians, while calling on leaders to govern with fairness and compassion in the new year.

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